Program housing · Leasing & tenant law · Owners & management · 11/02/2026
UWS tenants protest secret HPD supportive housing deal at 126 W. 86th St.
Tenants at a 72-unit rent-stabilized Upper West Side building say they were never told about a 2023 HDFC transfer and supportive housing agreement with HPD that allows up to 30% of units for formerly homeless and high-risk adults. They claim drug use and no visible support staff. HPD says it installed new management and is exploring a transfer to the nonprofit Sisters of Charity.
Reported by New York PostRead the original ↗

What happened
The New York Post reported on 11/02/2026 that tenants at 126 W. 86th St. on the Upper West Side say their building has been opened to hard-to-place adults from the shelter system, including people the tenants describe as active drug users, mentally ill individuals and people with criminal records. The tenants association says residents were not told about the deal. One line of the Post story refers to West 83rd Street, but the article gives the address as 126 W. 86th St.
According to the Post, the building has 72 rent-stabilized units. It is owned by St. Timothy's and St. Matthews Housing Corporation, connected to a now-defunct church. The city took out a lien in 2018 over unpaid property taxes. In 2023 the deed was transferred so the building became a Housing Development Fund Corporation (HDFC), and the city canceled more than $2.3 million in property tax debt. The Post reports that on the same day, the HDFC signed a supportive housing agreement with HPD and did not tell tenants. The building is now in the process of being sold to another HDFC nonprofit, Sisters of Charity.
The Post says the 40-year Article XI agreement, approved by the City Council in 2024, lets the owner set aside up to 30% of units, or up to 23 apartments, for these placements, with subsidy payments of up to $6,000 a month. HPD officials and Sisters of Charity CEO Matthew Janeczko told residents at a meeting that placements would be capped at eight units. The Post notes that standard Article XI agreements require 10% of units for formerly homeless households. Six tenants who spoke anonymously described drug use, trespassing and suspected prostitution. They also said one placement has been arrested three times since moving in during 2024, twice for stabbings. They said they have never seen support staff at the building. The tenants are also still affected by the 2023 killing of neighbor Maria Hernandez, 74, by a superintendent who the Post says was hired without a background check.
An HPD spokesperson said the agency is listening to residents' concerns and working with elected officials. The spokesperson said HPD recently oversaw the appointment of a new property management company and is exploring a transfer of the building to a new nonprofit owner with greater capacity.
Key facts
- Address
- 126 W. 86th St., Upper West Side, Manhattan
- Units
- 72 rent-stabilized units
- Set-aside allowed
- Up to 30% of units (up to 23 apartments), per the agreement the Post reviewed
- Cap stated at meeting
- Eight units, per HPD and Sisters of Charity CEO Matthew Janeczko
- Subsidy
- Payments of up to $6,000 a month for placements
- Tax debt canceled
- More than $2.3 million, at the 2023 HDFC transfer
- Agreement
- 40-year Article XI agreement with HPD, approved by the City Council in 2024
- Pending owner
- Sisters of Charity, an HDFC nonprofit
What it means
Tenants and voucher holders
Existing rent-stabilized tenants keep their stabilization rights. Tenants say they fear conditions could push them out, and they are pressing HPD and elected officials over how many units go to placements.
Caseworkers
Clients placed in buildings like this may be expected to get scattered-site services, but tenants told the Post they have never seen support staff on site. Confirming who provides services, and how often, matters before and after a placement.
Landlords
This building is an HDFC under an Article XI agreement with HPD, not a typical private building. The Small Property Owners of New York said owners worry the supportive housing model could spread to privately owned properties, but the material describes no such rule.
The highlights
- A 40-year Article XI deal lets the owner set aside up to 23 of the 72 units.
- The city canceled over $2.3 million in tax debt when the deed went to an HDFC.
- Placement subsidies run up to $6,000 a month, but HPD told tenants eight units.
Why it matters
Shows how Article XI and HDFC deals can shift unit use in tax-distressed buildings, and why on-site services and tenant notice matter.
What to do: Review the regulatory agreement and service plan before taking on any Article XI or HDFC building.
Not known yet
- How many apartments are currently filled through the supportive placements
- Which agency or provider is responsible for services for the placed residents
- When the sale to Sisters of Charity is expected to close and whether the eight-unit cap will be put in writing
- The name of the new property management company HPD says it appointed
Background
In New York City, a Housing Development Fund Corporation is a nonprofit ownership structure used for affordable housing. Buildings under Article XI of the state Private Housing Finance Law can receive tax benefits in exchange for a long-term regulatory agreement with HPD that sets rules on rents and who may rent units, often including a share for formerly homeless households. Supportive housing for people leaving shelter is generally offered either in congregate buildings with on-site services or in scattered-site apartments in regular buildings, where case managers visit clients. Rent-stabilized tenants generally keep renewal rights regardless of a change in ownership.
Buildings in this story
- 126 W. 86th St · building facts and open city records
Summary written by Bulwark from New York Post’s reporting. The original story is at nypost.com. This is general information, not legal advice.
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